Caterpillar cuts its revenues in machinery, energy and transportation
Caterpillar reported revenues of $ 41.748 million in 2020, a 22% decrease from 2019.
Likewise, sales were lower in all regions and in its three segments, Machinery, Energy and Transportation.
Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.
The company also provides financing and related services through its Financial Products segment.
While being a leading US exporter, through a global network of independent dealers and direct sales of select products, Caterpillar builds long-term relationships with customers around the world.
In 2020, the operating profit as a percentage of the company’s sales and revenue was 10.9% in 2020, compared to 15.4% in 2019.
Caterpillar
The decrease in its revenues last year was due to lower sales volume driven by lower demand for equipment and services from the end user and the impact of changes in dealer inventories in the three main segments.
For one thing, dealers reduced machine and engine inventories by about $ 2.9 billion during 2020, compared to an increase of roughly $ 800 million in 2019.
From another angle, North American sales declined 31% due to lower end-user demand and the impact of changes in dealer inventories.
North American distributors decreased inventories during 2020, compared to an increase during 2019.
Meanwhile, sales decreased 28% in Latin America, due to lower sales volume in the region, driven by lower demand from end users and the impact of changes in distributors’ inventories.
In addition, sales were lower due to the unfavorable currency impacts of a weaker Brazilian real.
In the region, distributors decreased inventories during 2020 and increased inventories during 2019.
